Trump Threatens to Bar Canadian Products From Federal Contracts

President Donald Trump threatened to bar Canadian-origin products from being sold to U.S. federal contractors on Tuesday. The move follows the implementation of procurement policies by Canadian federal and provincial governments that favor local businesses and materials.

Trump directed the General Services Administration to coordinate with the United States Trade Representative to remove these products from GSA Multiple Award Schedules. He stated that this action would remain in effect unless Canada restores access for American firms, declaring, "From now on, NO RECIPROCITY — NO ACCESS!"

Shares of several Canadian firms with U.S. government exposure dropped by more than 2 percent in Toronto following the announcement. Affected companies included CGI Inc., WSP Global Inc., AtkinsRealis Group Inc., Stantec Inc., and Aecon Group Inc. In response, CGI Inc. clarified that its federal arm, CGI Federal, is a U.S.-based subsidiary that provides U.S.-originated technology services.